EUR/GBP gearing up for a test of 0.8500?

The renewed bid tone in the Sterling is prompting EUR/GBP to ease some ground albeit still trading at shouting distance from the key barrier at 0.8500 on Friday.

EUR/GBP gains still limited around 0.8500

Yesterday’s slump of the British pound following the BoE dovish message has allowed the European cross to erode previous losses and recover the boundaries of 0.8500 the figure today, amidst cautious trade ahead of US Non-farm Payrolls (170K exp.).

Data wise in Euroland, German Factory Orders have contracted 0.4% MoM during June, while house prices gauged by the Halifax index are due later across the Channel.

EUR/GBP key levels

The cross is now losing 0.08% at 0.8484 facing the initial resistance at 0.8499 (high Aug.4) followed by 0.8627 (2016 high Jul.6) and then 0.8651 (high Aug.28 2013). On the downside, a breach of 0.8383 (23.6% Fibo of 0.7595-0.8627) would expose 0.8248 (low Jul.14) and finally 0.8233 (38.2% Fibo of 0.7595-0.8627).